News

The Big Opportunity That Most Marketers Are Missing

The Difference Between Upselling and Cross-Selling

There’s a marked difference between upselling and cross-selling, in that upselling is a technique used by salespeople to encourage a customer to spend more by purchasing a premium or upgraded version of the product they’re already interested in purchasing. In contrast, cross-selling is when the salesperson suggests the customer purchase a related service or product.

About Upselling

Many companies focus their marketing efforts on attracting new customers, when in fact there’s an even bigger opportunity right in front of them, and that is to provide their existing customers with a top customer experience by upselling to them.

When upselling is used correctly, it not only brings in more revenue, it can actually bring you closer to your customers. Research shows that there’s a 5% to 20% probability of selling to a new prospect, whereas there’s a 60% to 70% probability of selling to an existing customer. You can see that there’s a huge gap between these figures, which shouldn’t really be surprising because, as customers, don’t we really prefer to purchase from a business we’re already familiar with, a business we trust, rather than one we’ve never done business with before?

Upselling, when done correctly, is not a negative thing. When a customer feels that an upsell helps them win, this selling technique can result in a win-win situation for both parties. Unfortunately, it does happen that unscrupulous salespeople try to make money by selling people things they don’t need; but, when handled correctly, upselling can make for very happy customers.

So how do you know when your customer is ready for an upsell? Below we’ve listed the most obvious indicators that your customer may be ready for an upsell:

No. 1: The Customer Already Loves Your Product

DISCLOSURE:
The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer